Is the amount no longer due during a charge-off? A charge-off status simply means the creditor is unable to get a payment from the consumer for over 180 days. After which by law the creditor has to report the account on the books as a bad debt. This does not mean the creditor is absolving the debt. The creditor can legally still try to collect for the duration of the statute of limitations. They can file a suit in court in order to obtain a judgment against the debtor. The creditor is also legally permitted to either sell or assign the debt to a third-party collection company. Unless the charge-off is due to identity theft or fraud.

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